Your financial adviser or insurance agent may have been urging you to shop more insurance or to review policies you have already bought. It may not sound cosy to you but it’s not a bad idea. You need to give a recheck to your Insurance policies every once in a while to make sure you are adequately covered and not paying for policies you no longer need them.
Since your liabilities, assets, risk etc. change over the time, and you don’t want to pay for Policies which have no importance now, reviewing of your insurance needs and policies is a must. Here, I am trying to list some points why you need to review your insurance policies after a regular interval.
You might Find Better Plans
With the presence of several private / public sector insurers in the Indian insurance market, a tough competition within them is increasing. To lure customers, insurers are bringing features enriched new innovative products benefiting policyholders. There is possibility that you might find better plans at a lesser premium; that best suit your present requirements.
Besides, insurance premiums can change frequently for several reasons such as – changes in crime rate, changes in mortality rate and inflation etc. So experts always argue to compare different policies at every renewal period or even more frequently to ensure you’re getting the best deal.
You might Catch Mistakes made in the Previous Policies
You may be sincere and probably have purchased insurance policies to protect your family’s financial freedom, health insurance for any medical emergencies, Motor insurance, child plans to give extra safety net to your kids. But there may be mistakes in those policies. For instance, you have a health insurance policy for your family which provides maternity benefits; but you no longer need this benefit. Shouldn’t it be discontinued? For maternity benefits alone, you may be paying huge premium. This is wastage of money and you should immediately stop paying for this policy.
Change in Assets
Over the time it’s possible that your assets change. For example, you have purchased a homeowners insurance policy years ago when you had lesser goods inside your home. Now, you may have purchased expensive articles for your home, such as – new LED TV replacing old CRT, imported furniture, electrical appliances etc. This is time to review your insurance policy.
It’s obvious that you’ll likely to pay more premiums that can affect your pocket, but it’s necessary. What if any disaster occurs? It’d leave you in a pain. But a revised insurance can save you from such trauma. You will actually be covered for what you own.
Change in Family
You may have purchased a Health insurance Policy when you were unmarried or no child, and now if have been blessed with a baby or two, you need to upgrade your existing health insurance policy that can provide coverage to Your Entire Family. It is also probability that you might get better policy at lower premium rate.
Therefore, it’s always advisable to do though review of your insurance policies regularly. If you’re not doing that you might be overpaying or under insured .